Question

Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable for example record the purchase on July 1 in Accounts Payable--Boden.) Jul 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 Jul 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500 Jul 3 Paid $125 cash for freight charges on the purchase of July 1. Jul 8 Sold merchandise that had cost $1,300 for $1,700 cash Jul 9 Purchased merchandise from Leight co. for $2,200 under credit terms of 2/15, 1/60. FOB destination, invoice dated July 9, Jul. 11 Returned $200 of merchandise purchased on July 9 from Leight and debited its account payable for that amount Jul. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount Jul. 16 Paid the balance due to Boden Company within the discount period Jul 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15 w/60, FOB shipping point, invoice dated July 19 Jul. 21 Gave a price reduction (allowance) of $100 to Art cos for merchandise sold on July 19 and credited Art's accounts receivable for that amount Jul 24 Paid Leight co the balance due, net of discount Jul 30 Received the balance due fron Art Co. for the invoice dated July 19, net of discount Jul. 31 Sold merchandise that cost $4,890 to Creek Co for $7.000 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. Viewsection

im really struggling on these two.. if someone would be able to explain how they got these two i would greatly appreciate it !!!

Answer 1

Date Credit General Journal Debit July 1 Merchandise Inventory $6,000 Accounts Payable - Boden (to second merchandise purchased) $6,000 July 2 Accounts Receivable - Creek $ 900 $ 900 Sales to record vales) July 2 $500 soo cost of Goods sold Merchandise Inventory (to second cost of goods sold) $ $125 July 3 Merchandise Inventory Cash (to recold freight charges paid) $125 July & $ 1,700 Cash $1,700 sales (to second celes) Julyo cost of Goods sold $1,300 Merchandise Inventory to record cost of goods sold) $ 1,300

July 9 $ 2,200 Merchandise Inventory Accounts Payable - weight (to record merchandise purchased) $2,200 July 11 $200 Accounts Payable - Leight Merchandise Inerentory (To record merchandise in returned $ 200 July 12 Cash $ 882 Sales Discounts # 18 accounts Receivable - Creek (o recond due balance received) $900 $6,000 July 16 Accounts Payable - Boden Merchandise Inventory Casho . (to second due balance paid) $60 $5,940 July 19 $ 1,200 Accounts Receivable - Art Sales (to record sales) $ 1,200 $800 | (. July 19 Cost of goods sold Merchandise Inventory (to record cost of goods sold)

July 21 Sales Returns and allowances Accounts Receivable - Art to record allowance on goods sold) $2,000 July 24 Accounts Payable - Leight Merchandise Inventory Cash to record due balance paid) $ 40 $1,960 July 30 $1,078 $22 Cash Sales discounts Accounts Receivable - Art To seeord due balance received) $ 1,100 $7,000 July 31 Accounts Receivable -Creek Sales (to record sales) July 31 Cost of goods sold $4,800 Merchandise Inventory (to recond cost of goods sold) $ 4,800

Calculations = July 12 : Sales discounts = $900 x 2% discount $18 cash a $ 900 - $18 $ 882 July 16: Merchandise Inventory $6,000 1% discount $60 Cash $6,000 - $60 $ 5,940 2,200 returned) x 2% discount $ 2,000 x 27 = $40 cash = $2,000 - $40 discount = $1,960 & Allowance July 30: Sales discounts = ( (sales - Sales Return) x Discount to ($1,200 - $100) x 2% = $1,100 x 27 = $22 cash = $1,100 - $22 discount $ 1,078